28th Jul 2008
Irish Banks worst perfoming in the world
I went diving in Strangford Lough at the weekend. Conditions were good with excellent visibility and plenty of sea life.
The financial waters around Ireland are much less clear, in fact things appear very murky indeed.
According to the Tribune, new figures show that Irish bank stocks have been among the worst performing in the world this year, as fears of overseas investors grew over the possibility of a deepening downturn here.
The index that tracks six Irish financial stocks – AIB, Anglo Irish, Bank of Ireland, FBD, IFG, and Irish Life – has fallen 47% since the start of the year and dropped 60% from late July last year. That compares with a 27% fall this year for the eight bank stocks that make up the FTSE 350 Banks Index in Britain and the 34% fall this year for 22 US banks in the S&P Banks Index.
Yesterday’s Tribune also carried negative speculation about Anglo Irish Bank, the island’s third largest. They are due to make a trading statement on August 13th and the markets as well as government and the construction industry will be looking with interest to see if the rumors of their exposure are true.
From a communication perspective it is clear the banks are on the mother of all PR offensives trying to talk up the situation. With so much speculation and conjecture we will probably have till the compulsory trading statements come around before the reality of the situation is known.
Meantime the Sunday Business Post reports several of the country’s top bankers, along with dozens of other high-profile business figures, have emerged as investors behind a €100 million property project in the heart of the Hungarian capital of Budapest.
Funds raised two years ago by former Goodbody Corporate Finance executive Mark O’Donovan are planned for a joint venture to build apartments, offices and a marina on Margaret Island (Margit sziget), a 2.5 km-long island in the middle of the Danube in Budapest.
Looks like the smart money is moving out.
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